The Herald, Sharon, PA Published Tuesday, December 16, 2003

Pair allege former business partner misspent money

By Cary Snyder
Herald Staff Writer

Two former business partners of a Hubbard man who helped secure the purchase of the land Hubbard Township residents fear will be turned into a landfill have filed suit in Trumbull County Common Pleas Court.

George L. Csatary and Judith O. Nagy, both of Cleveland, filed the suit Nov. 18 that names Frederick V. Hudach, 6251 Chestnut Ridge Road, Hubbard Township, and Robert A. Frank of Camp Hill, Pa., as the primary defendants and seeks about $830,000 in damages.

Trans Rail America Inc., the Maryland-based company that owns about 243 acres between Drummond Avenue and Mount Everett Road, Eco-Waste Management Inc. and Financial Opportunities Inc., both of Hubbard, are also named.

Csatary and Ms. Nagy allege they were introduced to Hudach and Frank for the purpose of starting two companies to develop a landfill on the acreage in Hubbard Township.

Eco-Waste was to purchase the property Trans Rail America bought in July and Financial Opportunities would manage and operate the landfill, the suit says.

"At the time my clients were involved, the land was intended for a construction- and demolition-debris landfill," said Keith E. Blaha, a Cleveland lawyer who represents Csatary and Ms. Nagy.

Michael Partlow, a lawyer with Morganstern, MacAdams and DeVito, Cleveland, who represents Hudach and Frank, declined to comment on the intended use of the land, saying "it goes to the heart of the matter in that case."

The four partners -- Csatary, Ms. Nagy, Hudach and Frank -- borrowed $130,000 in October 2002 so Eco-Waste could buy the land.

Instead of the intended plans, the suit claims Hudach used the money on his personal real estate and to buy the Hubbard Township property formerly owned by Midwest Steel on behalf of Trans Rail America.

"We had no knowledge of Trans Rail," Blaha said on behalf of his clients. "They were pressured out by Frank and Hudach and we found out by doing a property search on the land."

The suit says that when Hudach and Frank failed to repay the money, the plaintiffs borrowed additional funds to repay the loan. Csatary and Ms. Nagy are seeking $130,000 -- the amount of the loan -- plus 30 percent in annual interest and $500,000 in punitive damages.

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